Debt service funds are used to account for which of the following?
A) Payment of only interest on general long-term debt.
B) Payment of only principal on general long-term debt.
C) Payment of principal and interest on general long-term debt.
D) Payment of principal and interest on all debt of the government.

Question

Quizplus · Accepted Answer

Debt service funds are used to account for the payment of both principal and interest on general long-term debt. They are typically established separately from the general fund and are funded through transfers from the general fund or other revenue sources.

Debt Service Funds Are Used to Account for Which of the Following